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Mayor: Does consultant have conflict of interest?
Power company executive also works for a local ranching family
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Victoria’s mayor is concerned that a power company executive is also working for a powerful ranching family that might oppose a proposed nuclear plant.

The executive in question is Mark Rose, general manager of the Bluebonnet Electric Cooperative, which distributes power to the Austin area.

He also works for the O’Connor Ranch interests, which are concerned about the plant Exelon Nuclear is considering building in Victoria County.

Mayor Will Armstrong stopped short of saying Rose has a conflict of interest, but that is a question he’s raising.

“Leading the fight against Exelon Nuclear in Victoria, in my mind, is a little more than consulting,” he said.

Rose said he’s talked to three attorneys and all have told him there is no conflict. His attorney has answered Armstrong’s questions, yet the mayor continues to pursue the issue, Rose said.

“This is getting very personal and getting very ugly and is way uncalled for in my opinion,” Rose said.

Rose has been called to testify today before the Senate Business and Commerce Committee, which will be looking into electric cooperative issues.

“I have been asked to be there, I think, because of the mayor,” he said. “If that’s the case, this is likely to get pretty serious.”

State Rep. Geanie Morrison, R-Victoria, said she plans to attend the Senate committee hearing today.

“I’m just going to be representing my constituents and their concerns,” she said. “We’ve got the community working hard to bring a nuclear plant to Victoria.”

She said she wants to know if Rose has a conflict, and she plans to raise that question at the hearing.

The O’Connor Ranch interests have made no public comment about whether they oppose the plant that could be built next to their ranch in south Victoria County, ranch spokesman Bill Jones said. The plant would produce power for distribution throughout South Texas.

“We’ve publicly stated our concerns about the plant,” Jones said. “We’re just trying to educate ourselves about the positives and negatives.”

He said he couldn’t address the question about whether there is a conflict.

“But it wouldn’t appear so,” he said. “There’s been no objection to this point from Bluebonnet, to my knowledge.”

Rose has worked for the ranch for five years, offering advice on various public policy issues, Jones said. Rose was not specifically hired because of the Exelon proposal, he added.

Rose said he had a private consulting company when he was asked to work for Bluebonnet. He said he agreed to close his consulting business, with the exception of a long-standing agreement he had with the O’Connor Ranch interests.

“I keep those two things completely separate,” Rose said. “I do what I do for the O’Connors on my own time.”

Instead of trying to keep a consultant from working, Armstrong should be more concerned about hearing what his constituents have to say, Rose said.

Armstrong sent a letter in January to Rick Schmidt, chairman of Bluebonnet’s board, stating he is aware Rose works for the co-op and as a consultant.

“It concerns me that Bluebonnet Electric Co-op would tacitly, implicitly or by their silence, endorse Mr. Rose’s actions in this manner,” Armstrong’s letter states.

Armstrong received a letter Feb. 5 from James B. Blackburn Jr., Rose’s attorney, accusing Armstrong of improperly attacking Rose and the co-op. Blackburn’s letter also states Rose has the co-op’s permission to work as a consultant independent of Bluebonnet.

“By this letter, I am asking you to cease and desist from any further letter writing or other attempts to interfere with Mr. Rose’s consulting activities,”Blackburn wrote.

He added that it’s his opinion that Armstrong’s actions violate the civil and legal rights of Rose.

Armstrong, though, said he’s looking out for his constituents’interests and would not stop asking questions.

David Tewes is a reporter for the Advocate. Contact him at 361-580-6515 or dtewes@vicad.com, or comment on this story at .

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